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A conversation with Deep Rising filmmaker Matthieu Rytz about the promise and the peril of mining the ocean floor.

“To say, ‘Don’t harm the ocean’ — it is the easiest message in the world, right? You just have to show a photo of a turtle with a straw in its nose,” Michael Lodge, the secretary general of the U.N.’s International Seabed Authority, told The New York Times last year. “Everybody in Brooklyn can then say, ‘I don’t want to harm the ocean.’ But they sure want their Teslas.”
Canadian filmmaker Matthieu Rytz apparently didn’t get the memo. Deep Rising, his new documentary narrated by Jason Momoa, aims at one of the great contradictions of the energy transition: that deep-sea mining could provide a wealth of copper, nickel, and cobalt, the battery materials that are critically needed for EVs and clean-energy storage — and could also trigger ecological collapse in the fragile Pacific Ocean abyss.
At the center of this debate is the International Seabed Authority, a Jamaica-based U.N. organization tasked with the conflicting goals of protecting the ocean floor and writing regulations for the extraction of “polymetallic nodules.” The metal-rich nodules are sprinkled across an internationally governed part of the Pacific called the Clarion-Clipperton Zone, which starts about 500 miles south of Hawaii and by some measurements stretches roughly twice the size of India. By the estimate of The Metals Company, which has a multi-billion-dollar stake in an eventual mining operation, the supply of nodules would be enough to eventually power “280 million electric vehicles.”
At the same time, scientists — including a whistleblower from inside The Metals Company’s own exploratory team — have stressed that we know almost nothing about the deep ocean, least of all how a large-scale mining operation could impact everything from regional biodiversity to the potential extinction of undiscovered animals to ocean carbon sequestration. The nodules alone take millions of years to form.
On Monday, the International Seabed Authority kicked off a two-week-long meeting to discuss potentially issuing the first commercial mining permits. It’s already met staunch opposition: The United Kingdom just came out as the latest nation to demand a moratorium on deep-sea mining, joining calls for a total ban issued by France, Germany, New Zealand, and at least 13 other countries. (The U.S. is not a part of the International Seabed Authority because it was one of only four countries that declined to formally ratify the United Nations Convention on the Law of the Sea in 1984, thanks to Republican opposition. China, Norway, and Russia are the major proponents pushing for deep-sea mining to open up).
With this as our backdrop, I spoke to Rytz about the making of Deep Rising and the complexities of the deep-sea mining debate. Our conversation has been edited and condensed for clarity.
Tell me a little bit about how you discovered this story. As the narration points out, deep-sea mining is “out of sight and out of mind” for most people.
I discovered it in 2018 when I was finishing my previous film [Anote’s Ark], and working with the president of Kiribati in the middle of the Pacific. Because of the work I was doing, I had privileged access, since the president was the main character of my film. I started hearing the conversation about deep-sea mining when basically nothing was in the media; it was an absolute unknown story. It really intrigued me. I was like, Wow, this is a very interesting, complex story. I jumped on it and went on the long journey till now.
The U.N.’s International Seabed Authority begins a nearly two-week-long meeting this week that will potentially end with the issuing of the first provisional licenses for deep-sea mining. What has it been like to follow these developments while you’re in the final stages of releasing and promoting this film?
Once the mining code — if the mining code — is ratified, it will be extremely hard to change it. It’s not like in government when you have political football between two parties. Once the regulation is in place, it might take the same amount of time just to make an amendment because you need to get a consensus of all the U.N. members. So it’s a critical time now because they’re actually drafting it and if it passes, the text will define how deep-sea mining will go.
There’s still a chance, actually, to block it or to postpone it. There has been a big wave of countries signing a moratorium and there was very big news yesterday, from the U.K., which is supporting the moratorium. We’ve seen some smaller states sign it; France was a big one, but the U.K. is a significant gain in the movement for a moratorium.
But for me — and this is the story of Deep Rising as well — I’m like, well, okay, sure, let’s say deep-sea mining is stopped by a ban or a moratorium or simply because the mining code doesn’t happen. That doesn’t stop the need for nickel. And that, for me, is the biggest conversation, because if deep-sea mining doesn’t go ahead, it will mean way more pristine ecosystems are torn down in tropical rainforests — mainly in Indonesia, but also New Caledonia, the Philippines, Madagascar, a lot of places. In northern Russia, they’re mining nickel in the tundra and they’re releasing massive amounts of methane.
So for me, it’s not one or the other. Deep-sea mining is better because we’re going to save the rainforest is a fundamentally flawed argument. Because we don’t need nickel in the first place; there are solutions that are not based on finite resources. There’s battery chemistry that is based on iron-phosphate batteries. Green hydrogen is another very good example and a very good debate.
And, you know, we don’t need to buy that many private cars; we need to develop and share resources. When you see the climate bill from President Biden subsidizing every citizen to buy an EV, it’s basically subsidizing removing the pristine ecosystem in Indonesia. I don’t call that a climate plan.
I wanted to ask you about that. The script of Deep Rising can be pretty critical of the energy transition, calling it the “so-called green revolution.” Can you tell me a little about the use of that term, “so-called”?
This is exactly what I mean. You take the narrative of the “green revolution” from the official perspective — the president’s perspective or the industry’s perspective, from President Biden or Elon Musk. Let’s say they have the same narrative: Buy a Tesla and you’re going to save the planet. Because Tesla would not exist without subsidies; every taxpayer in the U.S. has spent massive amounts of money to make it happen. And I’m not against EVs, but it’s important to understand the climate has no boundaries. If you remove the ecosystem in Indonesia, you’re increasing the climate crisis in the U.S., and so on. You’re putting your citizens at risk. Every country is similar.
There’s no reason to go after finite resources like nickel. Again, if there was no solution, it’d maybe be like, “Oh, there’s a trade-off.” But the point is, at a very large, industrial scale, there are solutions to produce energy without extracting finite resources.
In the film, the narration states that “critical metals are not the solution; they are the new oil.” I’m convinced that there could be grave ecological consequences to deep-sea mining, but how do you reconcile that against the grave ecological consequences of the fossil fuels we’re extracting and burning now?
Again, it’s a matter of changing the chemistry of the batteries. If you take the composition of the Earth’s crust, nickel is 0.009%. Iron is 5%. Iron is everywhere. A company like BYD in China, they’ve been very successfully building for like five years now EVs that are as good as Tesla’s with no gram of nickel, no gram of cobalt. Iron and phosphate are widely available. Rivian, in the U.S., they’re also shifting. And that can happen — anytime soon, GM or Ford or Toyota could change their battery chemistry.
Wait — if this is something we have the technology for now, and it’s scaleable, why are mining companies spending all this time and money building deep-sea vacuum cleaners to suck up nodules to power batteries that we don’t even need to be using?
Because there’s a whole supply chain that’s already been built. And when you’re investing billions of dollars to build battery factories, you need to sell enough batteries to recoup your investment. The problem is we made the investment in the wrong direction.
The second problem is political. The EU could ban nickel in the battery and that’d be it. Then Volkswagen and Volvo and BMW and Renault, all the German and French carmakers, would have no choice. I don’t think it’s as easy in the U.S. but in the EU, that’s a move they could do. It’s happening: The U.K. did a moratorium [on deep-sea mining]. France did a total ban. And, of course, some will lose a lot of money, but it’s the right thing to do.
And the Chinese, by the way — most of the domestic market doesn’t use cobalt and nickel. They’re very advanced; the Blade technology from BYD is years ahead. But they’re not exporting that much because of the commercial war, basically.
On your website, you have a manifesto, which states that your aim as a filmmaker is to “ask uncomfortable questions instead of providing reassuring answers.” Can you talk a little about how that philosophy guided your approach to this film in particular?
My background is not in filmmaking; it’s in anthropology. I think because of my upbringing as an intellectual, I can see a system’s complexity. Filmmakers can sometimes cut straight to a conclusion and for me, it’s very challenging because I needed to simplify when making a film. I think I’ve oversimplified already; I see the film and I think “Oh, this is so oversimplified!” even when it’s a very complex film for most of the viewers.
I could have done a film that was just bashing the mining industry, showing how bad they are and how bad capitalists are destroying the planet. The problem with this is, you preach to the choir. The people you actually need to talk to, they will not listen.
Instead, I got invited to speak to the finance sector, the mining sector, a few weeks ago at a big conference in Geneva. Some of the biggest hedge funds and banks — a Swiss bank, a European bank, a Singaporean bank — they were all in the room. They were asking me for advice about if they should have deep-sea mining in their portfolio. We’re talking hundreds of millions of dollars. And I was like, “I can explain to you why you shouldn’t.”
The change is massive when you can tap into the higher side, the financial system, basically. For me, it’s a really interesting goal, because I take this approach so it’s like, “Oh, you’re not just bashing us and saying how bad we are. Let’s set aside our differences and sit down for coffee.”
I wanted to ask about the disagreement within the Pacific Islands communities. On the one hand, you show grassroots resistance to deep-sea mining in Papua New Guinea; on the other, you also show a delegate from Nauru (which sponsors a subsidiary of The Metals Company) pressuring the International Seabed Authority to make a quick decision on commercial licensing. Is the jury still out on deep-sea mining when it comes to regional community support?
There are two forces here. One is that no corporation can apply for a deep-sea mining license. The Metal Company cannot go to Jamaica and say, “I want to mine the deep ocean.” You need to find a country that will sponsor you. So the Metal Company can fly into Nauru, the smallest country in the world, and promise them the moon. Nauru is a very specific story with a long history of extraction with the Commonwealth, with Australia, New Zealand, and Canada. They’ve been mining phosphate since the Second World War. So this is a very specific case.
When it comes to other countries, like Kiribati and a lot of other island nations, they’re kind of under the Chinese now. And there’s a lot of paradox with China because again, the domestic market is very different than the exporting markets. They’re fueling the rest of the world with nickel, so they have six licenses [in the Clarion-Clipperton Zone] and they’re lobbying quite hard now to get deep-sea mining approved. But they own 60% of the nickel capacities globally and the U.S. has 0%. So for the Chinese, they’d still get all this nickel to basically keep the rest of the world dependent on them.
I have to ask about the cinematography, which is absolutely gorgeous. I think a lot of times deep sea animals don’t get the respect of more charismatic environmental icons like polar bears or whales because they look so alien and creepy. But the footage you included really gives this part of the world vibrance, life, and personality.
It came from years and years of digging through hard drives. A lot of the footage comes from scientific expeditions. It was a very long process for me to convince the researchers to give me the license to use their footage, too, because their first reaction was like, “No, it’s scientific material; that specific jellyfish, which is undiscovered, is under embargo.” Which means the scientists haven’t published their paper yet. And I was like, “Guys.”
Is there anything else you’d like our readers to know?
The concept of the common heritage of humankind is very important. It’s outlined in the Law of the Sea, a set of strong rules by the U.N., that the deep sea belongs to humanity. And every citizen of the planet has a shared responsibility to really look at what is happening because it’s the biggest land grab in human history. The mining area is the size of Mongolia. It’s enormous: I mean, imagine if Mongolia, which is an entire country, was mined entirely. It doesn’t make sense. We have a shared responsibility because we know the climate crisis doesn’t have boundaries. Everyone is concerned.
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The Science Based Targets Initiative just released a major update to its signature rulebook for setting climate goals.
Companies have a new rulebook for what constitutes credible climate action. The Science Based Targets Initiative, an organization that seeks to align corporate sustainability plans with the goals of the Paris Agreement, published a major update to its signature Net Zero Standard on Thursday designed to help companies assess their progress on climate goals, not just set them.
The update marks a significant expansion of the standard, which previously defined what a good corporate emissions target looked like, but did not say much about how to achieve it. The new version sets requirements for what companies must do to prove they are advancing toward their benchmarks.
“The standard is moving from being focused on ambition only to really focused on implementation,” Alberto Carrillo Pineda, the SBTi’s co-founder and chief technical officer, told me.
This accompanies a broader rhetorical shift in the standard, which asks companies to demonstrate progress on a “best-efforts basis” rather than judging them solely on absolute emissions reductions. In the foreword to the standard, Chair Francesco Starace says that the SBTi made “an explicit choice to recognize that companies do not control everything, and that pretending otherwise does not serve anyone.”
That ethos permeates the revisions and additions to the standard. Here’s a breakdown of some of the biggest changes.
Version 2 of the standard introduces a new “implementation hierarchy.” Companies must first do everything in their power to reduce emissions directly. Once they have exhausted those options, they can then pursue indirect actions such as buying renewable energy certificates or certificates for low-carbon cement.
This isn’t just a guideline. It’s a reporting requirement. Companies are asked to “document and demonstrate” all of the actions they have assessed and implemented to reduce their emissions directly, as well as to define the constraints to pursuing additional reductions. They also have to describe their indirect actions and explain how they “complement, and do not substitute for” direct reductions.
The updated standard differentiates between larger and smaller companies, and those based in higher-income and lower-income countries, recognizing that the former in both cases will have an easier time decarbonizing than the latter.
Larger companies in higher-income countries, referred to as “category A companies” are required to set near-term, five-year targets for all emissions related to their businesses, whether they fall under scope 1, 2 or 3. All others are required to set targets only for scope 1 and 2. Category A companies are also required to verify much of their reporting to the SBTi with a third party, while this is optional for other companies.
The updated standard clarifies that in order for renewable energy certificates to count toward a company’s scope 2 target, they must be “deliverable,” or purchased from a clean energy source within the same grid region as the company. That means a company with offices or factories in Idaho can’t buy certificates from a solar farm in Florida. (The standard does seem to offer some wiggle room on that rule to companies with many locations.)
An earlier draft of the new standard released last year would have required that companies set targets for purchasing hourly-matched, deliverable clean electricity. That would mean looking at their energy consumption for every hour they operate and setting a goal to match it with an equivalent amount of locally produced clean power for a certain percentage of hours.
Much to the disappointment of proponents of this strategy, however, that’s not in the final standard. Companies can set scope 2 targets on an annual matching basis, meaning they can effectively claim they consumed solar power at night and will not have to do the hard work of trying to clean up the harder-to-decarbonize hours of the day.
The standard does, however, require those larger companies in category A to at least report the percentage of their energy use that they have matched with clean power on an hourly basis. This reporting rule aligns with a proposal by the Greenhouse Gas Protocol, a separate corporate standard-setter focused on emissions accounting. The SBTi also aims to encourage companies to make progress on hourly-matched clean power by creating a new dashboard showing which companies have exceeded certain benchmarks — 50% until 2030, 75% until 2035, and 90% from that year onward.
Previously, regular old carbon credits like the kind that pay a Brazilian landowner not to cut down trees or fund a methane capture system at a landfill had no place in the SBTi’s net-zero standard. Also, while the “net-zero” in the name implied that companies should eventually begin investing in carbon removal credits to make up for any residual emissions, the earlier version did not say when they should start doing that.
Now, the SBTi says it will require category A companies to begin covering some of their ongoing emissions with carbon removal beginning in 2035. Because companies are only required to set targets in five year increments, they won’t have to report on those efforts for several years. But the carbon removal industry will require investment now to be able to meet demand in 2035, so companies will likely need to begin buying credits today in order to meet that deadline.
Prior to 2035, companies will be able to earn kudos for purchasing carbon avoidance and removal credits by participating in something the SBTi is calling the “ongoing emissions responsibility program.” The program has three tiers that will recognize companies that are contributing to a lower, medium, and high degrees of carbon mitigation, ranked either by tallying dollars spent or tons of carbon abated. Companies will still not be allowed to count these credits when measuring progress toward their targets, however.
One question hanging over the news is whether the SBTi’s definition of a “science based target” is still appropriate. The organization requires companies to calibrate their targets to be consistent with limiting warming to 1.5 degrees Celsius above pre-industrial levels by the end of the century. But many scientists believe the world has already warmed more than 1.5 degrees. In theory, cooling the planet back down to this level by 2100 is still possible with a huge amount of carbon removal, but it appears exceedingly unlikely.
“Of course, there is healthy scientific debate about what is the most likely temperature outcome, so that's something that we are aware of,” Pineda said when I asked about this. “But we maintain the focus to catalyze transformation consistent with achieving net-zero emissions by mid-century.”
Pineda may have been downplaying how much the SBTi has considered this. After our call, I did a search for “1.5°” in the new version of the standard and the old one. The temperature target appeared 59 times in the old document, but just once in the new one, and only in the executive summary, where it was used to describe the SBTi’s larger mission as an organization. Nevertheless, the standard continues to emphasize a long-term goal of net-zero emissions by 2050, and there is no indication that the underlying modeled decarbonization pathways that the SBTi uses to validate targets are going to change.
SpaceX and Tesla have produced executives and founders across the clean energy world. Here’s what they had to say about working for their former boss.
While SpaceX founder and Tesla CEO Elon Musk is often lauded for turning technology like reusable rockets and American-made electric vehicles into thriving businesses in a way long thought impossible, or at least improbable, he has also more quietly done something about as unlikely: get investors excited about capital-intensive hard tech startups.
For most of the time Musk was sleeping on the floor of Tesla’s factory to oversee Model 3 assembly and his rockets were riding across the country on the back of flatbed trucks, the venture capitalists that fund the next generation of technology companies were largely enamored with software businesses, which required little capital to start up and could scale quickly with accelerating profitability.
Today, thanks in no small part to Musk, hard tech companies are able to raise hundreds of millions of dollars within a few years of being starting up, with top-flight venture capital firms such as Andreessen Horowitz building whole funds devoted to the broad sector.
That investor interest has helped nurture a series of startups founded and led by former SpaceX and Tesla employees. These types of businesses don’t have the forgiving characteristics of software companies; instead, they’re often incredibly capital intensive, and require years of design and manufacturing before profits show up. Climate tech and energy companies almost inevitably fall in this category, often working on trying to turn technology that may mostly exist in a lab with nascent markets and high barriers to scale into something that can generate real returns for investors.
To mark the occasion of SpaceX’s initial public offering, Heatmap decided to survey the landscape of SpaceX and Tesla alumni now cutting their own swath through the climate tech marketplace. We identified 40 founders and executives, who all together spent a total of 252 years working for Musk. They’ve since moved on to companies in 9 different industries, from Musk-adjacent categories such as batteries and electric vehicles to carbon removal and grid tech. Cumulatively they’ve raised at least $27 billion, according to the data available in Crunchbase. (Since we finalized this list, one more Musk alum-founded company has emerged from stealth. Welcome to the world, Ambrosia Energy.)
Heatmap asked these founders and executives by email what they learned from their experiences working at Musk-led companies, and we heard back from more than a dozen of them. The vast majority of those told us it was no accident that they’d ended up where they have after working for Musk.
“While working at Tesla, I was surrounded by people who were there for the hard stuff and thrived on it,” Mateo Jaramillo, co-founder and CEO of the long-duration battery company Form Energy and a former Tesla Energy vice president, told us. “It's not just that they tolerated it — that was the stuff they lived for. There are moments in a company's arc when that kind of mentality is required, and at Tesla in those days it was like walking through a crucible every single day, with truly no idea how things were going to resolve. And yet you keep going and figure it out along the way.”
Musk himself has been a formidable digester of investor capital, including from Founders Fund, the venture capital firm founded by his former PayPal colleague Peter Thiel, which invested in SpaceX before its first successful launch.
Founders Fund has since become an investor in several Musk-alumni-founded companies, including the fuel enrichment startup General Matter, the geothermal company Endurance Energy, and the hydrogen company Hgen.
Another frequent investor, Andreessen Horowitz, had previously been the great promoter of software businesses. Its cofounders Marc Andreessen and Ben Horowitz wrote the seminal essay “Why Software Is Eating The World,” which became a manifesto for its investments in businesses like Facebook (now Meta) and Twitter (now X). Since then, a16z, as it’s known, has expanded its remit and invested in several Musk-alumni founded companies, including the power electronics company Heron Power, the mining services company Mariana Minerals, electric boat company Arc, and home battery company Base Power.
These investments are not just simply giving money to Tesla and SpaceX employees to do the same things they did in their previous jobs. Many of the companies we looked at were founded by SpaceX alumni and have nothing to do with space, rockets, or satellites.
Mike Schroepfer, former Meta chief technical officer and founder of hard tech VC firm Gigascale Capital, which has invested in Heron and Form, as well as battery systems company Arbor and nuclear microreactor company Radiant, told us that when founders have a Musk company on their resume, it tells him “they’ve been trained to build in the physical world, which is rarer than people think.”
And what’s rare can be profitable.
“Hardware is capital-intensive for the best possible reason” Schroepfer said. “You’re building the foundations the world runs on, and those things have to work reliably and get cheaper as they scale. The dollar figure tells you investors are starting to take the physical world seriously again.”
Philip Schröder, who left the European battery startup Sonnen to run Tesla’s Germany and Austria business, told us that after he rejoined his former company, the European battery startup, they were able to raise “one of the largest cleantech financing rounds in Europe.”
It’s not just raising money where a SpaceX or Tesla pedigree helps. Many former employees of the two companies left with enough of a financial cushion to take a risk on something new. When asked how being part of SpaceX helped him found his own company, John Bucknell, who worked on the Raptor rocket engine at SpaceX, said that having worked for Musk gave him the “financial freedom” necessary to start a company — in his case Virtus Solis, which is developing solar power in space.
But it also doesn’t hurt when raising money to put a SpaceX or Tesla logo on a slide deck, considering the size of returns they’ve generated for their backers.
Former Tesla employees have started and run some of the buzziest and best funded battery, transportation, and electrical infrastructure companies in the world. These include Lucid Motors, led until recently by former Tesla VP of vehicle engineering Peter Rawlinson, battery recycling company Redwood Materials, founded by former Tesla chief technical officer J.B. Straubel, and Heron Power, founded by Drew Baglino, who worked at Tesla from 2006 to 2024, ending his career there leading its powertrain and energy divisions.
When asked how their current work was connected to their past work for Musk or what they had learned, the founders and executives we surveyed — especially the SpaceX alumni — focused more on management and engineering principles than anything specific to energy or transportation.
“You can get way more done in a day and can move way faster than you think,” Justin Lopas, the co-founder of the home battery company Base Power, and a former manufacturing engineer at SpaceX, told us of what he’d learned from Musk.
Musk’s legendary short deadlines (which he says he only expects to hit about half the time) came up frequently among the group. Describing his time at Tesla, Arch Rao, the founder and chief executive of the smart electric panel company Span and a former head of products at Tesla Energy, told us, “The milestones to hit were incredibly audacious, but with the right group of people, possible. This has been a key model for how Span has scaled from the very early days to today.”
Jonathan Criss, the co-founder and chief executive of the desalination company Vital Lyfe, who worked at SpaceX for over a decade on both the Dragon spacecraft and the satellite communications service Starlink, told us that the rocket company had a unique “building for rate” philosophy, where engineers work backwards from a specific production goal, as opposed to first designing a product and then figuring out how to manufacture it as cheaply as possible. “That capability lets us design and manufacture highly reliable products at a fraction of the cost of most of the industry,” Criss said.
Investors, too, recognize SpaceX and Tesla alumni’s ability to work fast. Schroepfer, of Gigascale Capital, told us that speed sets these founders apart. “They know physical products can take years to get from first unit to cost-competitive scale. Even with a long timeline, they move with urgency,” he said. “They get how iteration and cost-down curves only work if you move fast, learn fast, and scale deliberately.”
Several founders also talked about learning to challenge assumptions. “At Tesla, there was a strong culture of questioning established ways of doing things,” Enric Asuncion, the co-founder and CEO of the EV charging company Wallbox who worked as a program manager for vehicle charging at Tesla, told us. Austin Spiegel, the co-founder and CEO of the infrastructure management software company Sift and a former software engineer at SpaceX, said that his former employer never accepted that something was good enough just because it existed. “Instead of buying off-the-shelf software, they asked, what would this look like if we designed it for a company that's going to launch and land rockets for the first time? That stuck with me.”
A former product engineer for Tesla’s Powerwall battery business, Cole Ashman, gave another example. He described how, for years, enabling a home to island from the power grid during a blackout required a labor-intensive, expensive electrical job. Tesla engineered a backup switch that was quicker and easier to install, but it required utility cooperation. “Conventional wisdom said it would never get broad approval,” Ashman, who founded the battery startup Pila, told us. “Tesla did the unglamorous work of bringing utilities along and moving the codes and standards — and pulled the whole industry forward.”
The other management concept that came up frequently was “ownership,” the idea of devolving responsibility down to engineers who were directly responsible for the projects they were working on. Working at SpaceX “taught me how to run a challenging hardware development program: how to choose and organize engineers around a tough unsolved problem, and give each of them real ownership from concept to mission success,” Colin Ho, founder and chief technology officer at the electrolyzer company Hgen, told us.
Frank Tybor, the chief technical officer at Infravision, the drone grid maintenance company and a former launch engineer at SpaceX, told us that “one of the things that made SpaceX special was the concentration of exceptionally talented people who were willing to take ownership of difficult problems and work across traditional organizational boundaries to solve them.”
Andreessen has endorsed the description of Musk-run companies and SpaceX specifically as a “zone of shocking competence” that attracts the best engineers, which its alumni founders have tried to recreate. Justin Cohen, the founder and CEO of Maritime Fusion who did stints at both Tesla and SpaceX, told us the talent network was “analogous to SEAL Team 6 of engineering; there is no better on earth.”
Several mentioned the Musk alumni network as a recruitment resource for their own businesses. “Tesla has cultivated a highly passionate ecosystem of engineers and tech developers,” Rao, the Span founder, told us. “My experience at Tesla helped me quickly identify what a skillful talent pool looks like and expect rapid and ambitious development from them.”
Brad Hartwing, a former SpaceX manufacturing engineer and founder and chief executive of Arbor Energy told us that “several early Arbor employees came from SpaceX, and that shared experience helped us build a world-class engineering team quickly. Many of us have worked on complex, high-stakes technology; we’ve already proven that we can execute in demanding environments, which helps when building a hard-tech company from scratch.”
When asked to name specific, non-Musk employees that influenced them, one name came up more than another: J.B. Straubel, the former Tesla chief technology officer and founder of Redwood Materials.
“Straubel is easily one of the smartest yet incredibly humble engineers and leaders I’ve had the opportunity to work with,” Rao told us.
Straubel, along with Heron Power’s Drew Baglino, “were both influential in how they helped solve complex problems within the company while dealing with constant pressure on cash & company survival,” Kunal Girotra, former Tesla Energy chief and founder of the battery company Lunar Energy, told us.
Jaramillo, the Form Energy founder, also singled out Straubel and Baglino, saying, “They’re very different people from each other, but both technically world class, with incredibly high standards. They drove that mindset into their teams from an engineering perspective — to never compromise on those standards.” About Straubel specifically, Jaramillo said that he had an “amazingly calibrated impatience, to know precisely when enough study is done, to just push start and get going in the physical world, and accept that you're going to learn things along the way.”
While Musk and his legions of former employees have helped turn hard tech and climate tech into an investible sector for venture capitalists, the amount of money the companies we’ve looked at have raised — about $30 billion — pales in comparison to the hottest sector, artificial intelligence. Even SpaceX, the signature hard tech company of its era, is itself running a massive “neo-cloud” business, renting out data center capacity to companies like Anthropic and Google to the tune of around $2 billion a month.
That being said, Tesla and SpaceX, which together are worth around $3 trillion, will continue to produce engineers and managers with sizable net worths and resumes uniquely looked favorably on by investors.
More than 4,000 current and former SpaceX employees are expected to become instant millionaires after the IPO, with 400 potentially getting at least $100 million, generating a wave of wealth that can give potential founders the cushion necessary to found their own company — or the capital necessary to become investors themselves.
“I think this is the emergence of a hardware mafia,” Schroepfer told us. “The PayPal mafia helped define an era of software and internet companies. This group will probably define an era where the center of gravity moves back toward atoms: energy, industry, mobility, infrastructure, manufacturing, and the physical systems that modern life depends on.”
On Texas data centers, Holtec’s New Jersey plans, and Polish renewables
Current conditions: Las Vegas is well over 100 degrees Fahrenheit, and could hit 110 degrees by tomorrow • Tropical Storm Cristina is deluging Central America as it barrels toward the coast of El Salvador • Temperatures are already 110 degrees in Minab, Iran, where American missiles struck early this morning.
The two-month ceasefire is over. U.S. strikes on Iran began again Wednesday and continued early this morning as President Donald Trump vowed to make Tehran “pay the price” for stalled negotiations to end the conflict. The second day of strikes came hours after U.S. allies Bahrain, Kuwait, and Jordan came under Iranian missile fire. In response, oil prices surged yet again, right as U.S. inflation data showed a 4% price spike last month as higher energy prices ripple through the economy. Inflation is now at its highest level since April 2023. The price of West Texas Intermediate crude, the benchmark for American oil, shot up nearly 4% on Wednesday following the strikes, roughly twice the increase for the European and Emirati benchmarks.

Solar panels supplied a record 12.8% of the United States’ electricity last month, while coal fell to 12.2% in its fourth-lowest monthly share ever, according to a new analysis by the pro-renewables think tank Ember. It’s the first time in U.S. history that solar eclipsed coal for a whole month. Solar generated an all-time high of 45.5 terawatt-hours, exceeding its May 2025 output by 17% and surpassing last July’s previous record. This summer is on track to break yet more records. “U.S. solar power continues to set new records,” Nicolas Fulghum, a senior data analyst at Ember, said in a statement. “Overtaking coal for the first month on record shows just how far solar has come, from a niche contributor to the third-largest and fastest-growing source of power in the U.S. electricity system.”
The milestone comes as the U.S. prepares to produce more of its own solar panels. As I told you yesterday, America’s largest solar factory, South Korean giant Qcells’ plant in northern Georgia, is nearly at full capacity.
Texas has a reputation as a place where, if the land is yours, you can do what you want with it. That’s partly why the state has been such a hotbed for data center development. Well, the Republican leadership is pumping the brakes. In a letter to state regulators on Wednesday, Governor Greg Abbott recommended the legislature pass sweeping data center reforms. Among the policy changes The Texas Tribune highlighted:
The move comes in response to plummeting support among American voters for data center development. The latest poll from Heatmap Pro, which my colleague Robinson Meyer wrote up earlier this month, found that roughly three-quarters of U.S. voters now oppose data center development in their neighborhoods, including 55% who say they “strongly” oppose server farms.
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When the Department of Energy canceled the American Battery Technology Company’s nearly $58 million grant last October, it appeared to many as a sign that the Trump administration would go after virtually any firm awarded money by its predecessors, even if its business aligned with the White House’s policy priorities. But the Nevada-based battery and critical minerals startup said this week that the Energy Department had reinstated the grant, which was meant to support construction of the company’s first commercial lithium refinery. “Of the hundreds of DOE grants terminated last Fall very few have been able to successfully appeal the decisions and have their contracts reinstated,” American Battery Technology CEO Ryan Melsert said in a statement. “I am very proud of our team for relentlessly demonstrating the performance of these internally-developed critical mineral technologies and how crucial it is to implement and scale these commercial facilities to support the national security of the United States and enable its energy dominance.”
The Energy Department is also making moves on fusion. On Tuesday, the agency put out its roadmap for commercializing fusion energy, tapping more than 800 scientists to inform its analysis. “Fusion energy has entered a new era defined by extraordinary scientific progress and public-private momentum,” Darío Gil, the under Energy secretary for science, said in a statement. “With this roadmap, we now have the clarity, coordination, and sustained commitment needed to turn the promise of fusion into a reality for the American people.”
Holtec International was once the undertaker of the nuclear industry with a business split between manufacturing storage casks for spent fuel and decommissioning shuttered plants. But the company is nearly ready to turn a shuttered atomic power plant back online for the first time in U.S. history, with its Palisades nuclear station. It’s also considering rebuilding New York City’s defunct nuclear station, Indian Point. All the while, Holtec is racing to build its 300-megawatt pressurized water reactor. The first two units are set to debut at Palisades once the plant’s single older reactor is back online. Next it’s looking at building as many as four of the small modular reactors at Holtec’s half-demolished Oyster Creek nuclear station in southern New Jersey. If approved, the Asbury Park Press reported, the project would generate nearly 1.3 gigawatts of power.
I reached out to Patrick O’Brien, Holtec’s director of government affairs, who confirmed the story. “It’s a potential project post-Palisades SMRs,” he wrote in a text.
If you’re booking a flight right now, you might not yet be feeling the difference. But U.S. production of jet fuel has reached record highs as refiners scramble to respond to soaring prices following the closure of the Strait of Hormuz. By the start of May, the four-week average estimate of fuel production surpassed 2 million barrels per day for the first time on record, according to new analysis by the Energy Information Administration. But with domestic inventories still relatively high, much of that increased production is being exported.